Oracle Projects Supply Chain

2. Oracle Projects Supply Chain Paulo BackVice President – Applications Development

3. Program Agenda • Overview • Best in Class Projects • Best in Class Procurement • Projects Supply Chain • Planning Your Roadmap

4. The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

5. Roadmap: Continued Releases & Innovation Ongoing Point Releases Easy to Uptake Planned Released Major Release 12.2 11.5.10 12 12.1 Minor Release 12.1.2 12.1.3 RUP1…RUP2…RUP3… Nov. 2004 Jan. 2007 May 2009 Dec 2009 Aug2010

6. OracleEnterprise Project Portfolio Management

7. ENTERPRISE PROJECT PORTFOLIO MANAGEMENT (EPPM) Oracle E-Business Suite RESULTS Strategic Alignment Project Financial Management Project Analytics Performance, Governance, and Control Single Business System Procurement Resource Management Risk Management Change Management SUPPLY CHAIN WIDE RESOURCES COO/CIO/CPO/PMO Corporate Finance Business Unit Executives Suppliers Ecosytem Buyers Planners Project Managers Resource Managers Program Managers EPPM Evolution Business Value PROJECT PORTFOLIO MANAGEMENT (PPM) RESULTS Programs Resource Management Risk Management Change Management Plan and Schedule Complex Projects DIVISION/LOB RESOURCES Resource Managers Program Managers Planners Project Managers Project Controls PROJECT MANAGEMENT (PM) RESULTS Plan and Schedule Complex Projects DEPT./GROUP RESOURCES Planners Project Managers Project Controls Strategy

8. Oracle E-Business Suite Projects Enterprise Project Performance Management Project Analytics Project Portfolio Management Project Resource Management Project Financial Management Budgeting & Forecasting Project Management and Operations Planning and Scheduling Costing and Billing Project Procurement Change Management Capacity Planning Contract Management Earned Value Management Financials Business Operations Human Resources Time and Labor Supply Chain Application Foundation End-to-End Industry Processes Master Data Management Comprehensive Security Enterprise Analytics

9. A Widening Chasm 72% of CEOsidentify the ability to manage projects as critical to the future growth of the business… just 11%are very confident of their ability to manage business critical projects Source: IPMA Study Sept. 2010

10. OracleAdvanced Procurement

11. Procurement Business Process Value Driven Procurement: Supporting Complete Cycle Supplier Management Cost Savings • 3. Supplier • Identification • 2. Supplier • Assessment • 1. Spend Analysis • 4. Sourcing • 7. Order Fulfillment • (Services • Procurement) • 8. Electronic Invoice • Presentment and • Payment Process Efficiency • 5. Contract Lifecycle • Management • 6. Procurement Supplier Collaboration

12. Less than 10% of Finance executives believe in procurement savings Reported savings are discounted by >30% Gulf Between Claimed Savings & Financial Impact Procurement vs. Finance “Savings claimed by procurement are falling to the bottom line and can be proved” Perception Gap Source: Hackett Closing the Gap Between Claimed Savings on Indirect Spending

13. By Itself, Marginal Cost Reduction Has Limits • LOBs resist procurement’s involvement because • Lack domain expertise outside of negotiating deals • Fears that procurement will focus on cost to the exclusion of other critical success factors • Limited alignment with MBOs • Suppliers resent procurement as an adversarial agent of margin transfer

14. Traditional approach: Is There a Better Way? Disconnected plans, long planning cycles, high latency in decision making BUYER SUPPLIERS PROJECT MGR CUSTOMERS Marketing Forecast Tier 1 Tier 2 Project Plan ? Acquisition Plan Budget & Forecast Mfg plans Sales Forecast Delivery Actuals Paper Supply Chains built on INVENTORY Unpredictable Project Delivery • Response 1: Maintain excess inventory • Response 2: Reserve production capacity • Response 3: Expedite everything!

15. Manage YourSupply Chain Procurement Spend as % of Revenue Pharmaceuticals 56% Financial Services 22% Aerospace & Defense 47% Semiconductor 56% Indust. Mfging. 55% Chemical 53% Utilities 39% Metals & Mining 44% DOE/NNE Contractors 46% Other Industries 48% Petroleum 43% Eng. & Const.53% Procurement is a fundamental part of the Project Source: CAPS Research

16. Procurement’s Disproportionate Margin Impact Small Changes. Big Difference. 5% Reduction in Spend Increases Profit by 50% Profit +50% • Increase Sales by 50% • Cut Overhead by 20% Spend -5% In order to obtain an equivalent impact, a firm would have to...

17. Real Time Strategy, Planning and Execution Strategic Alignment, Collaborative Planning & Integrated Execution BUYER SUPPLIERS PROJECT MGR CUSTOMERS Project Specification Tier 1 Tier 2 Portal Operations Forecast Project Plan Customer Drivers Supplier commit Budget & Forecast SOV Acquisition Plan Forecast & Delivery Actuals Collaboration REDUCED LATENCY, FULL VISIBILITY • Benefit 1: Reduced planning cycle time • Benefit 2: Faster and better decision making • Benefit 3: Closed-loop planning and execution • Benefit 4: Enables best-in-class processes Supply Chains built on INFORMATION

18. Transforming from Cost to Value Driven Builds on Transaction & Cost Management • Customer Driven • Strategy • Planning • Execution • Integrated across and within organization • Networked – based on knowledge • Strategic Sourcing • Total Cost Reduction • Finance Collaboration • New Categories • Shared Services • PO Management • Overhead Reduction

19. OracleProjects Supply Chain

20. Creating Alignment Via Key Value Drivers Source to Settle Extend Reach of Procurement Knowledge Concept to Commercialize Creation to Fulfillment demand Products Acquire to Retire Planning to Production assets supply

21. Align Plan Report Analyze Execute Monitor Oracle Projects Supply Chain Strategic Alignment RESOURCE MANAGEMENT ENTERPRISE ENTERPRISE MANAGEMENT Collaborative Planning CAPITAL PERFORMANCE HUMAN Integrated Execution MANAGEMENT SUPPLY CHAIN MANAGEMENT

22. Align Plan Report Analyze Execute Monitor Oracle Projects Supply Chain Strategic Alignment RESOURCE MANAGEMENT ENTERPRISE ENTERPRISE MANAGEMENT Collaborative Planning CAPITAL PERFORMANCE HUMAN Integrated Execution MANAGEMENT SUPPLY CHAIN MANAGEMENT

23. Projects Supply Chain Alignment of the Supply Chain Decisions Project Planning/ Detailed Design Procurement Execution • Define products / technologies • Execution Strategy • Evaluate SC configuration • Risk Management Strategic Decisions • Orderlong lead time products • Make or buy products • Selection of subcontractors and suppliers • Risk Allocation via Contracts • Risk mitigation via capacity( material, suppliers) Tactical Decisions • Order commodities • Risk mitigation via inventory and time buffers • Inventory and time buffer sizes • Locate inventory buffers • Risk mitigation via capacity buffer (subcontractors) Operational Decisions

24. Oracle Master Data Management Modern, Enterprise-Grade, Multi-Domain Data Governance & Compliance 10101010101010101010101 010110101010101010101010100 10101010101010101010101010101010 10101010101010101010101 010110101010101010101010100 10101010101010101010101010101010 10101010101010101010101 01011010101010101010101010100101010101010101 10101010101010101010101010101010 Enterprise Analytics ORACLE MASTER DATA MANAGEMENT 10101010101010101010101 0101101010101010101010101010 10101010101010101010101010101010 EPM/BI Enterprise Data Quality CRM CRM ERP Legacy… Customer Other Sources Customer Product Financial Site Supplier • Common Services & Enterprise Schema Oracle Fusion Middleware Oracle Exadata / Database

25. Supplier Management • Poor Visibility • Qualification and performance information gathered but invisible • Nowhere to store stakeholder intelligence • Spend analytics are incomplete and inaccurate Business Challenges • Supplier Management is Expensive • Haphazard qualification and on-boarding for suppliers • Paper-based profile administration • Repetition of manual supplier management activities Identification On Boarding • Fragmented Data • System data duplicated, incomplete &/or inaccurate • Data held within multiple systems • Data archeologist required to federate accurate information • Risk and Compliance Failures • Code of conduct assurance often a 1-time event • Difficult to ensure suppliers are adhering to laws, regulations & standards • Paper procedures to track critical documents Supplier Master Data Administration Transaction

26. Institute Supplier Management Improve Supplier Data, Qualification & Compliance

27. Align Plan Report Analyze Execute Monitor Oracle Projects Supply Chain Strategic Alignment RESOURCE MANAGEMENT ENTERPRISE ENTERPRISE MANAGEMENT Collaborative Planning CAPITAL PERFORMANCE HUMAN Integrated Execution MANAGEMENT SUPPLY CHAIN MANAGEMENT

28. Collaboration: A Better Approach Accelerate Inter-Enterprise Knowledge Transfer Sourcing & Procurement Schedule Project Managers Buyers Subject Matter Experts Suppliers Product Specifications

29. Plan, Design and Procure Engage all stakeholders in the planning process with integrated information and collaborative tools. Financial Planning WorkplanManagement Sourcing andProcurement

30. Planning by Cost Breakdown • Benefits • View by Activity, Resource, or Cost Breakdown • Standard cost coding structure across portfolio lead to better: • Estimating • Planning • Tracking • Cross-project reporting • Benchmark productivity measurements

31. Align Planning Strategies and Schedules • Procurement Plan • Project Manager and Buyer have a complete view of the procurement plan and current status • Buyer uses selection criteria to ensure the right supplier is chosen • Project Manager incorporates lead times and negotiated prices into project schedule and financial plans

32. Improve Strategic Sourcing Outcomes Strategic Sourcing & Contracts • Shorter time to market • Faster cycle times • Access to new technologies • Total cost reduction • Compliance to negotiated agreements Suppliers Operations Procurement Research & Development

33. Procurement for Complex Services Author Contract Track Progress Request for Service 4 Process Payment Advance Payment Source

34. Project Driven Supply Chain Planning Reduce Planning Cycle Time • Plan your entire value chain • Reduce the number of plans Make Better Decisions Faster • Automate planning decision making • What if simulation and root cause analysis Execute to Plan • Integrated planning and scheduling • Enforce planning decisions when promising orders Enable Best in Class Processes • Design collaborative planning processes • Plan demand and supply simultaneously and interactively

35. Align Plan Report Analyze Execute Monitor Oracle Projects Supply Chain Strategic Alignment RESOURCE MANAGEMENT ENTERPRISE ENTERPRISE MANAGEMENT Collaborative Planning CAPITAL PERFORMANCE HUMAN Integrated Execution MANAGEMENT SUPPLY CHAIN MANAGEMENT

36. Project Execution Align project, subcontract and procurement schedules to ensure on-time delivery Sub ContractManagement ChangeManagement Cost, Revenue,Billing and ProjectAccounting PhysicalProgress Forecasting

37. Financial Control Aggregate information across applications for a full view of project performance Asset andEquipmentManagement PerformanceManagement FinancialManagement

38. Reduce Schedule Delays • Project Manager Dashboard • Monitor resource usage and availability • Reduce inventories by aligning supply chain planning with the project delivery schedule • Track supplier delivery schedules and performance • Quickly evaluate the impact of material shortages

39. Sub-Contractor Management • Supplier Payment Dashboard • Project customer and supplier invoices in a single view for analyzing cash flow • View invoice totals and drill into invoice details • Manage supplier invoice holds • Link supplier invoice to customer invoices to create pay-when-paid holds • Update supplier contract deliverables • Generate supplier invoice hold reports

40. Sub-Contractor Management • Supplier Deductions • Miscellaneous deductions for supplier related project charges or damages • Create back-charge deductions for reimburseable incurred expenses • Associate deductions to a change order • Route deduction requests for approvals • Automatically process deductions in Oracle Payables

41. Change Management Rapidly Respond to and Plan for Project Changes Define Change Evaluate Impact Route & Approve Executives Implement • Record the change • Add new tasks • Control changes by change types • Manage issues & actions • Plan budget impacts • Conduct multi-thread discussions • Include in forecasts • Workflow-driven processes • Enable automatic notifications • Update budgetwith impacts • Retain history Project Managers Team Members • Plan financial impacts by task, resource and supplier contract (PO) • View budget impacts prior to accepting / approving • Consolidate multiple change requests into a change order • Provide complete audit trail of historical changes

42. What are Project Controls? Planning, Scheduling and Project Reporting Project Controls encompass the people, processes and tools used to plan, manage and mitigate cost and schedule issues and any risk events that may impact a project. Earned Value Analysis & Management Cost Engineering & Estimating Change Management & Controls Risk & Delay Claims

43. PlanningYour Roadmap

44. Oracle E-Business SuiteModern User Experience Mobile Experience with Great Performance

45. Endeca for Oracle E-Business Suite Complete Data View Key Metrics Highlights Google Like Search Search Across Organizations Search On Flexfields Advanced Visualization Guided Navigation® Range Filters with histograms Tag Clouds Charts Performance Metrics Metrics Bar Cross Tab

46. Mobile Application Strategy for EBS • iPad access to EBS Self-Service: • OA Framework being certified on Safari • Application Examples: • Projects time entry • Projects progress entry • HR Self-Service • iProcurement • Order Information Portal • Specialty Mobile Applications for EBS: • ADF Mobile-Based • Native Mobile UIs • Mobile device services • Disconnected access • Application Examples: • Mobile Progress Entry • Mobile Field Service • Mobile Maintenance • Mobile Shop Floor Manager • Endeca for EBS enhances user experience: • Projects • Order Management • Asset Maintenance • Discrete Manufacturing • Field Service • Channel Management • Oracle Business Intelligence Mobile: • Business Intelligence content on iPhone & iPad

47. Get to your results faster by searching across the project with Google® like searches Identify and act on tasks being delayed in either start or completion Multi-Select from the results to perform updates in an efficient manner

48. Oracle Project Analytics Rich Solution for Project Based Organizations • Project Management Dashboard • Designed for project managers to provide a complete view of project performance, from a comprehensive high level view of accumulated and trending information for a single or a group of projects, to detail information such as cost, revenue and budget transactions • Project Executive Dashboard • Designed for project executives to provide aggregated project performance data at the organizational level, allowing users to see the cumulative impact of their projects in the cost, revenue and profitability of their organizations • Public Sector Dashboard • Designed for public sector and non-profit organizations where profitability and margin are not tracked. It is a demonstrative example of how existing objects can be leveraged to build a custom dashboard tailored to specific requirements industry requirements.

49. Development Roadmap

50. iProcurement, Transformed • Solution • Increase savings by expanding use of negotiated prices • Reduce maverick spending • Improve the productivity of requesters and buyers